Net earnings in the first quarter were $5.0 million and diluted earnings
per share were $0.04 compared to $18.1 million and $0.13 per share in
the first quarter of 2016. Adjusted net earnings were $10.6 million and
adjusted diluted earnings per share were $0.08 in the first quarter
versus $20.9 million and $0.15 per share, respectively, in the first
quarter of 2016. The first quarter of 2016 included only one month of
interest expense following the company's spin-off from The Manitowoc
Company, Inc. on March 4, 2016. The effective tax rate in the first
quarter was 29.6 percent compared to 20.3 percent in last year's first
quarter.

Earnings from operations were $35.0 million in the first quarter
compared to $33.7 million in last year’s first quarter, an increase of
3.9 percent. As a percentage of net sales, earnings from operations were
10.7 percent in the quarter versus 10.4 percent in last year’s first
quarter. Adjusted operating EBITDA was $52.7 million in the first
quarter versus $50.1 million in last year’s first quarter, a 5.2 percent
increase. As a percentage of net sales, first quarter adjusted operating
EBITDA margin was 16.1 percent versus 15.4 percent last year, a 70 basis
point improvement.

“Our organic sales and adjusted operating EBITDA growth, particularly in
APAC and EMEA, get us off to a good start for 2017,” said Hubertus
Muehlhaeuser, Welbilt’s President and CEO. “This was the 7th consecutive
quarter of year-over-year adjusted operating EBITDA margin improvement
since the new management team took over in August 2015. We continued to
make progress with our Simplification and Right-Sizing initiatives this
quarter. Within Simplification, we pruned an additional 1 percent of our
equipment SKUs during the quarter, bringing our total equipment SKU
reduction to 17 percent since we adopted the 80/20 methodology. We did
experience materials price inflation during the quarter, especially for
certain components that go into stainless steel, however these were
offset by positive pricing in the quarter.”

“As we indicated in our 2016 fourth quarter earnings call, our debt
levels increased in the first quarter due to the combination of it being
our seasonal slowest sales quarter of the year as well as payments of
our annual customer volume rebates, our annual cash bonuses and a
semiannual interest payment on our Senior Notes. We expect to resume
de-levering our balance sheet in the second quarter.”

“We are reaffirming our 2017 annual guidance today. We continue to
expect end market conditions to remain good in the general market and to
slowly improve in the large Quick Service Restaurants ("QSR") and
fast-casual markets. We expect our Simplification and Right-Sizing
initiatives and additional price increases to fully offset higher
compensation expense and material price inflation and for the full year
we will deliver between 70 and 220 basis points of improvement to
adjusted operating EBITDA margin," concluded Muehlhaeuser.

Segment Discussion

Net sales in our Americas segment were $267.5 million, a 1.5 percent
increase. Third party net sales were $237.7 million, a 0.2 percent
increase (+0.3 percent organic, -0.3 percent divestitures, +0.2 percent
foreign currency translation). The organic third party net sales
increase was primarily driven by improved KitchenCare® sales
and increased sales of cold-side products, which were partially offset
by lower hot-side product sales and lost sales from 80/20 product line
simplification. First quarter adjusted operating EBITDA in the Americas
segment was $46.8 million compared to $49.8 million in the first quarter
of 2016. As a percentage of net sales, adjusted operating EBITDA margin
was 17.5 percent in the first quarter versus 18.9 percent in the same
period last year. The adjusted operating EBITDA margin decrease was
primarily driven by product mix, materials cost inflation, higher
compensation expense, and higher SG&A for R&D and marketing expenses.
These were partially offset by savings from our Simplification and
Right-Sizing initiatives and improved pricing.

Net sales in our EMEA segment were $67.8 million, a 1.2 percent
decrease. Third party net sales were $53.9 million, a 2.4 percent
decrease (+6.7 percent organic, -9.1 percent foreign currency
translation). The organic third party net sales increase was driven
primarily by higher sales of hot-side products including our new
Merrychef® eikon® e2s high-speed ovens and
stronger cold-side product sales including our beverage systems,
partially offset by the impact of lost sales from 80/20 product line
simplification. First quarter adjusted operating EBITDA in the EMEA
segment was $12.8 million compared to $7.6 million in the first quarter
of 2016. As a percentage of net sales, adjusted operating EBITDA margin
was 18.9 percent in the first quarter versus 11.1 percent in the same
period last year. The adjusted operating EBITDA margin increase was
primarily driven by higher leverage from increased volumes, better
product mix from our new product introductions, improved pricing,
increased efficiencies and savings from our Simplification and
Right-Sizing initiatives.

Net sales in our APAC segment were $41.7 million, a 7.2 percent
increase. Third party net sales were $36.4 million, a 10.3 percent
increase (+14.2 percent organic, -2.4 percent divestitures, -1.5 percent
foreign currency translation). The increase was driven primarily from
higher sales of hot-side products and KitchenCare parts. First quarter
adjusted operating EBITDA in the APAC segment was $5.5 million compared
to $3.7 million in the first quarter of 2016. As a percentage of net
sales, adjusted operating EBITDA margin was 13.2 percent for the first
quarter of 2017 versus 9.5 percent for the same period in the prior
year. The adjusted operating EBITDA margin increase was primarily driven
by higher leverage from increased volumes and savings from our
Simplification and Right-Sizing initiatives, and from operating
efficiency improvements.

Liquidity Discussion

Free cash flow was a $55.5 million use of cash in the quarter as the
company paid out annual volume rebates to customers, made a semi-annual
interest payment on its Senior Notes, and paid out annual cash bonuses.
Net other assets and other current and long-term liabilities, inventory
and accounts receivable were all uses of cash in the first quarter of
$52.5 million, $23.9 million and $6.0 million, respectively. Accounts
payable was a source of cash in the first quarter of $8.6 million.
During the quarter, total debt increased by $80.5 million primarily from
an increase on our revolving credit facility of $76.5 million. Our
ending cash balance was $82.6 million, an increase of $28.8 million
during the quarter. The majority of our cash is held by our
international subsidiaries.

2017 Guidance

We are reaffirming our full-year 2017 guidance ranges. We continue to
expect end market conditions to remain good in the general market and to
slowly improve in the large QSR and fast-casual markets. We also expect
to begin benefiting from 2016's and 2017's new product introductions. We
will again focus on margin improvement through the continued execution
of our Simplification and Right-Sizing initiatives. We expect interest
expense to be near the low end of our guidance range following the
successful repricing of the $825 million Term Loan B.

Effective tax rate: between 29 and 32 percent, based on current tax
laws;

Adjusted diluted EPS: between $0.65 and $0.75 per share, based on a
forecast of 140.8 million fully diluted shares outstanding;

Amortization expense: between $30 and $33 million;

Depreciation expense: between $16 and $19 million;

Capital expenditures: between $23 and $28 million; and

Debt reduction: between $100 and $120 million.

About Welbilt, Inc.

Welbilt, Inc. provides the world’s top chefs, premier chain operators
and growing independents with industry-leading equipment and solutions.
Our innovative products and solutions are powered by our deep knowledge,
operator insights, and culinary expertise. We offer fully-integrated
kitchen systems and our products are backed by KitchenCare® aftermarket
parts and service. Headquartered in the Tampa Bay area, Florida, and
operating 17 manufacturing facilities throughout the Americas, Europe
and Asia, the company sells through a global network of over 3,000
distributors and dealers in over 100 countries. The company has
approximately 5,500 employees and generated sales of $1.46 billion in
2016. Its portfolio of award-winning brands includes Cleveland™,
Convotherm®, Delfield®, fitkitchenSM,Frymaster®,
Garland®, Kolpak®, Lincoln™, Manitowoc® Ice, Merco®, Merrychef® and
Multiplex®. For more information, visit www.welbilt.com.

Forward-looking Statements

This release includes “forward-looking statements” intended to qualify
for the safe harbor from liability under the United States Private
Securities Litigation Reform Act of 1995 (the “Act”). Any statements
contained in this press release that are not historical facts are
forward-looking statements within the meaning of the Act. These
statements are based on the current expectations of the management of
the company and are subject to uncertainty and changes in circumstances.
Forward-looking statements include, without limitation, statements
typically containing words such as "intends," "expects," "anticipates,"
"targets," "estimates," and words of similar import. By their nature,
forward-looking statements are not guarantees of future performance or
results and involve risks and uncertainties because they relate to
events and depend on circumstances that will occur in the future. Such
risks and uncertainties include, without limitation, world economic
factors and the ongoing economic uncertainty; realization of anticipated
earnings enhancements, cost savings, strategic options and other
synergies and the anticipated timing to realize those enhancements,
savings, synergies, and options; availability of raw materials and
changes in raw material prices, commodity prices and hedges in place;
the ability to generate cash and manage working capital consistent with
our stated goals; changes in the interest rate environment and currency
fluctuations; the successful development and market acceptance of
innovative new products; actions by competitors including competitive
pricing; consumer and customer demand for products; and laws and
regulations, including changes in laws and regulations and their
enforcement around the world. Additional factors that could cause actual
results to differ materially from those reflected in forward-looking
statements include, but are not limited to, the risks and uncertainties
described in the section titled “Risk Factors” in the Company's most
recent Annual Report on Form 10-K filed with the Securities and Exchange
Commission ("SEC") and similar disclosures in subsequent periodic and
current reports filed with the SEC, which are available on the investor
relations page of the Company's website at www.welbilt.com
and on the SEC website at www.sec.gov.
Welbilt undertakes no obligation to update or revise forward-looking
statements, whether as a result of new information, future events, or
otherwise. Investors are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date on which
they are made.

Adjustments to reconcile net earnings to cash used in operating
activities:

Depreciation

4.0

4.3

Amortization of intangible assets

7.8

7.8

Amortization of debt issuance costs

1.3

0.4

Loss on early extinguishment of debt

3.2

—

Deferred income taxes

(2.9

)

(2.9

)

Stock-based compensation expense

4.4

1.3

Asset impairment expense

0.4

—

Changes in operating assets and liabilities:

Accounts receivable

(6.0

)

(8.4

)

Inventories

(23.9

)

(15.8

)

Other assets

(3.5

)

(8.3

)

Accounts payable

8.6

(16.3

)

Other current and long-term liabilities

(49.0

)

(3.2

)

Net cash used in operating activities

(50.6

)

(23.0

)

Cash flows from investing activities:

Capital expenditures

(4.9

)

(4.5

)

Changes in restricted cash

6.2

0.3

Net cash provided by (used in) investing activities

1.3

(4.2

)

Cash flows from financing activities:

Proceeds from long-term debt and capital leases

78.9

1,431.4

Repayments on long-term debt and capital leases

(2.5

)

(0.2

)

Debt issuance costs

(1.4

)

(40.6

)

Change in short term borrowings

4.0

14.5

Dividend paid to MTW

—

(1,362.0

)

Net transactions with MTW

—

6.1

Exercises of stock options

0.9

0.1

Net cash provided by financing activities

79.9

49.3

Effect of exchange rate changes on cash

(1.8

)

0.5

Net increase in cash and cash equivalents

28.8

22.6

Balance at beginning of period

53.8

32.0

Balance at end of period

$

82.6

$

54.6

SEGMENT INFORMATION

Three Months Ended March 31,

Millions of dollars

2017

2016

Net sales:

Americas

$

267.5

$

263.6

EMEA

67.8

68.6

APAC

41.7

38.9

Elimination of intersegment sales

(49.0

)

(45.6

)

Total net sales

$

328.0

$

325.5

Segment Adjusted Operating EBITDA:

Americas

$

46.8

$

49.8

EMEA

12.8

7.6

APAC

5.5

3.7

Total Segment Adjusted Operating EBITDA

65.1

61.1

Corporate and unallocated

(12.4

)

(11.0

)

Amortization expense

(7.8

)

(7.8

)

Depreciation expense

(4.0

)

(4.3

)

Separation expense

(0.9

)

(3.0

)

Restructuring expense

(4.6

)

(1.3

)

Asset impairment expense

(0.4

)

—

Earnings from operations

35.0

33.7

Interest expense

(23.2

)

(8.5

)

Interest expense on notes with MTW — net

—

(0.1

)

Loss on early extinguishment of debt

(3.2

)

—

Other expense — net

(1.5

)

(2.4

)

Earnings before income taxes

$

7.1

$

22.7

Adjusted Operating EBITDA % by segment (1) :

Americas

17.5

%

18.9

%

EMEA

18.9

%

11.1

%

APAC

13.2

%

9.5

%

(1) Adjusted Operating EBITDA % in the section above is
calculated by dividing the dollar amount of Adjusted Operating
EBITDA by net sales for each respective segment.

Net sales by geographic area (2) :

United States

$

215.0

$

212.1

Other Americas

23.0

23.0

EMEA

54.0

57.2

APAC

36.0

33.2

Total net sales by geographic area

$

328.0

$

325.5

(2) Net sales in the section above are attributed to
geographic regions based on location of customer.

NON-GAAP FINANCIAL MEASURES

In this release, the Company refers to various non-GAAP measures. We
believe that these measures are helpful to investors in assessing the
Company's ongoing performance of its underlying businesses before the
impact of special items. In addition, these non-GAAP measures provide a
comparison to commonly used financial metrics within the professional
investing community which do not include special items.

In addition to analyzing its results on a U.S. GAAP basis, management
also reviews its results on an "Adjusted Operating EBITDA" basis.
Adjusted Operating EBITDA is defined as earnings before interest, taxes,
other (income) expense, depreciation and amortization plus certain items
such as asset impairment, restructuring, separation charges and loss on
early extinguishment of debt. Management uses Adjusted Operating EBITDA
as the basis on which it evaluates its financial performance and makes
resource allocation and other operating decisions. Management considers
it important that investors review the same operating information that
it uses. Adjusted Operating EBITDA reconciles to net earnings presented
in accordance with U.S. GAAP as follows:

Three Months Ended March 31,

Millions of dollars, except percentage data

2017

2016

Adjusted Operating EBITDA:

Net earnings

$

5.0

$

18.1

Income taxes

2.1

4.6

Other expense — net

1.5

2.4

Loss on early extinguishment of debt

3.2

—

Interest expense on notes with MTW — net

—

0.1

Interest expense

23.2

8.5

Earnings from operations

35.0

33.7

Asset impairment expense

0.4

—

Restructuring expense

4.6

1.3

Separation expense

0.9

3.0

Amortization expense

7.8

7.8

Depreciation expense

4.0

4.3

Total Adjusted Operating EBITDA

$

52.7

$

50.1

Adjusted Operating EBITDA margin (1)

16.1

%

15.4

%

(1) Adjusted Operating EBITDA margin in the section above
is calculated by dividing the dollar amount of Adjusted Operating
EBITDA by net sales.

ADJUSTED NET EARNINGS

In this release, the Company refers to adjusted net earnings. We believe
this measure is helpful to investors in assessing the company's ongoing
performance of its underlying businesses before the impact of certain
items such as asset impairment, restructuring, separation charges and
loss on early extinguishment of debt. Adjusted net earnings before
certain items reconciles to net earnings presented in accordance with
U.S. GAAP as follows:

Three Months Ended March 31,

Millions of dollars, except share data

2017

2016

Adjusted Net Earnings (1):

Net earnings

$

5.0

$

18.1

Asset impairment expense

0.4

—

Restructuring expense

4.6

1.3

Separation expense

0.9

3.0

Loss on early extinguishment of debt

3.2

—

Tax effect of adjustments (2)

(3.5

)

(1.5

)

Total Adjusted Net Earnings

$

10.6

$

20.9

(1) Adjusted net earnings represents net earnings before
the impact of certain items such as asset impairment, restructuring,
separation charges and loss on early extinguishment of debt.

(2) The tax effect of adjustments is determined using the
effective tax rates for the countries comprising such adjustments,
which is primarily the U.S.

Adjusted Diluted Net Earnings Per Share:

Diluted net earnings per share

$

0.04

$

0.13

Asset impairment expense per share

—

—

Restructuring expense per share

0.03

0.01

Separation expense per share

0.01

0.02

Loss on early extinguishment of debt per share

0.02

—

Tax effect of adjustments per share

(0.02

)

(0.01

)

Total Adjusted Diluted Net Earnings Per Share

$

0.08

$

0.15

THIRD PARTY NET SALES AND ORGANIC THIRD PARTY NET SALES

In this release, the Company refers to third party net sales and organic
third party net sales. We believe this measure is helpful to investors
in assessing the company's ongoing performance of its underlying
businesses before the impact of acquisitions and divestitures and also
before the impact of foreign currency translation. Third party net sales
and organic third party net sales reconcile to net sales presented in
accordance with U.S. GAAP as follows: